The European Union has announced that vapor products won’t be taxed during this year. However, they plan to reopen this issue next year.
This decision was presented on January 12 in a report to the European Commission’s Council of Finance Ministers, which followed an examination of the 2011 Directive 2011/64/EU (the “tobacco excise directive”).
Vaping gadgets and e-liquids are not listed in the tobacco excise directive.
The commission came to this decision since a standardized taxation scheme is not suitable for electronic cigarettes and other vaping products. There is a need for further investigations in order to make a right decision.
Back in 2016, several representatives of the commission demanded a minimum excise tax on e-cigarettes, while others have asked to tax vaping products equal to regular cigarettes. However, the latter request didn’t get positive feedback from neither anti-tobacco campaigners nor other EU members, who considered that excise taxes applied to tobacco products can’t cover vaping products due to “health policy”.
Therefore, this year vapers can relax and enjoy their e-cigs.
The EU will get back to the taxation issue in 2019, within the future evaluation of the tobacco excise directive. Still, there is a nasty moment for European vapers since they can have one fewer advocate next year. As we know the United Kingdom is leaving the EU, so even if the “Brexit” won’t end before the planned taxation revision starts, the UK is unlike to have some influence in those negotiations.
In this year’s report, the commission underlined that “opinions on possible health effects of e-cigarettes and, consequently, the appropriate tax treatment largely diverge.”
The UK is the only EU member that considers vaping as an alternative to help smokers quit their hazardous habit.
Nowadays only nine EU member states have a kind of excises taxes on vaping products, among which are: Croatia, Finland, Greece, Hungary, Italy, Latvia, Portugal, Romania, and Slovenia.